Costs, Revenues and Profits Flashcards
0
Q
Indirect Costs
A
A cost not directly attributable to a cost centre or product line, eg. administration
1
Q
Fixed Costs
A
Costs which do not change in proportion to output in the short term, eg. salaries, advertising
2
Q
Loss
A
The deficit made a business when costs exceed revenues
3
Q
Profit
A
The surplus made by a business when revenue exceeds costs
4
Q
Revenue
A
The total value of sales made within a trading period. This is calculated by multiplying the units sold by the price per unit
5
Q
Variable Costs
A
These costs change as a result of changes in output only, eg. raw materials
